Yahoo Finance Is AEON Credit Service (Asia) Company Limited’s (HKG:900) CEO Salary Justified?
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Hideo Tanaka has been the CEO of AEON Credit Service (Asia) Company Limited (HKG:900) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for AEON Credit Service (Asia)
How Does Hideo Tanaka’s Compensation Compare With Similar Sized Companies?
Our data indicates that AEON Credit Service (Asia) Company Limited is worth HK$3.0b, and total annual CEO compensation is HK$2.4m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$1.9m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO compensation of that group was HK$2.2m.
So Hideo Tanaka is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at AEON Credit Service (Asia) has changed from year to year.
Is AEON Credit Service (Asia) Company Limited Growing?
On average over the last three years, AEON Credit Service (Asia) Company Limited has grown earnings per share (EPS) by 20% each year (using a line of best fit). Its revenue is up 8.8% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has AEON Credit Service (Asia) Company Limited Been A Good Investment?
Boasting a total shareholder return of 78% over three years, AEON Credit Service (Asia) Company Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
Hideo Tanaka is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AEON Credit Service (Asia) (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
